The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form:
Additional data for the current year are as follows: (a) Net income, $ \$ 75,800 $.
(b) Depreciation reported on income statement, $ \$ 38,000 $.
(c) Fully depreciated equipment costing $ \$ 60,000 $ was scrapped, no salvage, and equipment was purchased for $ \$ 150,000 $.
(d) Bonds payable for $ \$ 75,000 $ were retired by payment at their face amount.
(e) 2,500 shares of common stock were issued at $ \$ 30 $ for cash.
(f) Cash dividends declared and paid, $ \$ 40,000 $.
(g) Investments of $ \$ 100,000 $ were sold for $ \$ 125,000 $.
Prepare a statement of cash flows using the indirect method.

Question

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form:  ​
Additional data for the current year are as follows: (a) Net income, $ \$ 75,800 $.
(b) Depreciation reported on income statement, $ \$ 38,000 $.
(c) Fully depreciated equipment costing $ \$ 60,000 $ was scrapped, no salvage, and equipment was purchased for $ \$ 150,000 $.
(d) Bonds payable for $ \$ 75,000 $ were retired by payment at their face amount.
(e) 2,500 shares of common stock were issued at $ \$ 30 $ for cash.
(f) Cash dividends declared and paid, $ \$ 40,000 $.
(g) Investments of $ \$ 100,000 $ were sold for $ \$ 125,000 $. ​
Prepare a statement of cash flows using the indirect method.

Quizplus · Accepted Answer

The Answer of The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form:  ​
Additional data for the current year are as follows: (a) Net income, $ \$ 75,800 $.
(b) Depreciation reported on income statement, $ \$ 38,000 $.
(c) Fully depreciated equipment costing $ \$ 60,000 $ was scrapped, no salvage, and equipment was purchased for $ \$ 150,000 $.
(d) Bonds payable for $ \$ 75,000 $ were retired by payment at their face amount.
(e) 2,500 shares of common stock were issued at $ \$ 30 $ for cash.
(f) Cash dividends declared and paid, $ \$ 40,000 $.
(g) Investments of $ \$ 100,000 $ were sold for $ \$ 125,000 $. ​
Prepare a statement of cash flows using the indirect method.

The Comparative Balance Sheet of Barry Company for Years 1 $75,800 \$ 75,800 $75,800

The Comparative Balance Sheet of Barry Company for Years 1 $\$ 75,800$